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. the california department of education took a closer look and has ordered the district to repay nearly $25,000. we reached the district spokesman out of state. >> we dispute the notion or finding that we have misused funds. >> the wife gets paid a hundred dollars an hour for her duties there as a developmental teacher. that sounds a little -- >> it does. i'm not aware of their particular conversation levels. >> the school district is approved. and you have robert lacy junior, and he get paid $40 an hour. >> right. >> is that acceptable? >> really it's according to the guidelines. >> reporter: the department of education review ruled it was inappropriate. the district insists that's an interpretation of a law it's appealing. >> would you hire these people for the oakland public schools? >> we would not hire them. we are under a different jurisdiction and different regulations. >>> the school district insists it has followed the guidelines; but after our reports, the district cut off the federal funds. the saint andrew and the fbi has stepped in to question a possible misuse of federal mone
: education would also take a hit. >> this would undo a lot of the good a lot of californians are willing to invest in the schools. perhaps as much as 10% for the special needs students and the meals program that so many of the students in georgia are growing up -- california are growing up in poverty and they need that meal. >> reporter: it's not just the immediate cuts that worries the local officials, it's also the ongoing uncertainty that comes from the stalemate in washington. a stalemate that bay area officials fear could affect the economy just when it's starting to recover. >> we were looking forward to a better economy and this would just ruin all of the progress that's been made over the last year, year and a half. >> just say no that they can't get together. that's probably the worst decisions in the future. >> reporter: phil matier, cbs 5. >> he says local officials want to attract new investment to the area. >>> a federal worker here in san francisco saved the day for a few people with international travel plans that needed a little help. the duty officer decided to go to wor
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